Former Eskom acting CEO Matshela Koko has been found to have “personally signed off on a deviation order that allowed his stepdaughter’s company Impulse International, to score a R66m deal from Eskom without going out to tender.”
Business Day reported on Thursday that they had obtained a copy of a confidential “sole source justification” memo. The memo was reportedly signed by Koko on October 26 2016, therefore awarding Impulse a R65.8m contract. To make matters worse, that amount was “excluding VAT, accommodation, business travel and per diem”.
Just five months later, at the end of March 2016, Koko’s stepdaughter Koketso Choma (who was living with him at the time) became a director and shareholder of Impulse.
“Choma initially received a 25% stake hidden in a trust, which was later increased to 35%.
Afterwards Eskom awarded Impulse nine contracts worth R380m and subcontracts worth another R260m.”
Since Koko’s 26-year-old stepdaughter joined the company, Impulse has made total earnings of R640m.
The signed deviation has been listed as an exhibit in an investigation report by law firm Cliffe Dekker Hofmeyr and auditing form Nkonki. It is likely to be submitted as part of the evidence in Koko’s disciplinary hearing.
The report that Business Day saw revealed that it needed to be established if Choma had paid for the extra 10% stake she received at Impulse.
Impulse is also said to have made an “inter-company loan” to an entity Choma’s trust had an interest in. To make things even worse, the company also reportedly bought a property that was linked to Koko’s wife.
“It basically means he’s choosing a supplier that would soon be owned by his step daughter to work in his own division,” said a source familiar with the contract.
Koko faces six charges, including failure to declare his step daughter’s shareholding in Impulse.
By: The South African